NEW ALBANY, Ohio (WCMH) – When Pat Gelsinger was appointed CEO of Intel in 2021, he was heralded as the company’s much-needed savior. Now, it is unclear how his co-replacements will proceed with Intel’s $20 billion computer chip manufacturing facility in New Albany.

Just one week after the federal government approved CHIPS Act funding for Intel’s New Albany plant, Gelsinger, 63, announced his surprise and abrupt retirement. Gelsinger was at the helm of the tech giant’s expansion into central Ohio, as well as its financial turmoil and significant layoffs.

Gelsinger was replaced by two interim co-CEOs, senior managers David Zinsner and Michelle Johnston Holthaus. Zinsner is Intel’s executive vice president and chief financial officer, and Holthaus was also appointed to the newly created position of CEO of Intel Products. Holthaus had previously been executive vice president and general manager of the client computing group at Intel but stepped down to fill her new roles.

Few hints have been given as to how plans will proceed for the New Albany plant, which was already facing uncertainty amid Intel’s financial woes and political complications in both the incoming and outgoing presidential administrations. A representative from the Department of Commerce, which allocates CHIPS Act funds, said Intel’s leadership change will not affect its settled funding.

“We have designed our program around rigorous due diligence and milestone-based awards to advance our economic and national security objectives while safeguarding taxpayer dollars,” a Department of Commerce representative said. “While evolutions and transitions in the industry are to be expected, we will stay focused on those goals.”

Zinsner and Holthaus are collaborating in the role until Intel’s search committee can fill the vacancy. At a conference on Dec. 4, Zinsner said Intel will continue working to lead the semiconductor industry while cutting costs, according to Bloomberg. In Intel’s initial announcement, Zinsner and Holthaus said they will focus on “driving returns on foundry investments.”

Intel Foundry is the name for Intel’s semiconductor manufacturing business, and it encompasses Ohio’s Intel plant. In September, Intel announced plans to restructure Intel Foundry into an independent unit, allowing it to raise outside funding and maintain a distinction between the semiconductor business and Intel’s other affairs. Intel’s announcement also specified Intel Foundry’s leadership will remain unchanged.

However, according to Intel’s agreement with the U.S. government, Intel is restricted in how it can sell off parts of its foundry business. If Intel Foundry is an independent private company, Intel must own at least 50.1% of voting rights if it wants to keep its CHIPS Act funding. Similarly, if it becomes a public company, no other company can own more than 35% of it if Intel is still the majority shareholder. 

The Department of Commerce representative said ownership and control stipulations are a part of all negotiations and are not specific to Intel. Further, CHIPS Act funding is granted based on manufacturing milestones, not leadership changes. The representative said all companies go through changes and fluctuations, but Intel has met several of its milestones this year and will receive at least $1 billion by the end of 2024.

On top of federal protections for the funding, Ohio’s investments into Intel’s semiconductor plant also have “clawback” measures requiring the company to finish building two manufacturing plants and have them operational with 3,000 employees by the end of 2028. If they do not meet these requirements, Ohio can take back its funding and halt all payments. 

What may not help Intel’s financial struggles is Gelsinger’s hefty compensation package. Gelsinger is eligible for 18 months of his current salary, amounting to $1,875,000. He is also set to receive 1.5 times his current target bonus — $5,156,250 — and a pro rated bonus for the 11 months he worked this year. His 2024 bonus is undisclosed, but it was around $2.9 million in 2023, bringing estimates for Gelsinger’s payments to approximately $10 million.

As Intel shops for his replacement, Gelsinger continues to post about his former employees. On Sunday, he asked his followers on X to join him in praying and fasting for the 100,000 Intel employees facing uncertainty.

New Albany Mayor Sloan Spalding said the city will support Intel through its transition, adding the city is confident Intel’s investment will continue under new leadership. Gov. Mike DeWine and Lt. Gov. Jon Husted spoke similarly of the project after Intel’s announcement, issuing a joint statement assuring Ohioans they are confident Intel will continue its operations. Ohio State University, a founding partner of the Midwest Semiconductor Network, felt the same.

“We will continue to partner with Intel on research, education and workforce development programs that create opportunities for our graduates, advance semiconductor research and support Ohio’s economy,” Ohio State chief spokesperson Benjamin Johnson said. “Pat Gelsinger’s retirement does not change Ohio State’s commitment to the semiconductor industry in Ohio and across the Midwest.”